|  |  |  | | | | | FXOpen - Forex Live News | | | | | | | | | | | | | | | | | |  Consumer prices and external trade figures from Eurozone are the major statistical reports due on Monday. Czech producer prices and import prices are due at 3.00 am ET. Producer price inflation is expected to ease to 6.2 percent in April from 6.3 percent in March. Turkish consumer confidence and unemployment figures are also due at the same time. Italy's statistical office Istat is scheduled to issue trade balance for March at 4.00 am ET. In February, the trade deficit totaled EUR 3.63 billion. The Czech current account balance is also due at 4.00 am ET. Economists expect the current account balance to show a shortfall of CZK 8.5 billion compared to a surplus of CZK 15.95 billion in February. Eurozone final inflation figures are due at 5.00 am ET. The statistical office is expected to confirm 2.8 percent inflation for April. This was the highest level since October 2008 and also remains well above the central bank target. Trade data is also due from Eurozone. The trade balance is expected to show a surplus of EUR 2 billion compared to a deficit of EUR 1.5 billion in February. Italian final inflation data for April is also due at the same time. According to preliminary estimate, inflation rose to 2.6 percent in April from 2.5 percent in March. At 8.00 am ET, Hungary's central bank is slated to announce its interest rate decision. The central bank is widely expected to retain its key rate at 6 percent. In the meantime, Poland's current account and trade figures are due. The current account deficit is seen at EUR 1.23 billion in March compared to EUR 685 million in February. At the same time, the trade deficit is expected to widen to EUR 475 million from EUR 163 million. Consumer prices and external trade figures from Eurozone are the major statistical reports due on Monday. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | Singapore's non-oil domestic exports (NODX) recorded a surprise fall in April, latest data from the International Enterprise Singapore showed Monday. NODX fell 1.8 percent year-on-year in April following March's revised 9.9 percent increase. The March figure was revised down from 10 percent growth reported initially. Economists had forecast a 6.5 percent increase in exports from last year. On a month-on-month seasonally adjusted basis, NODX decreased 3.6 percent in April, compared to the previous month's 3 percent fall. The March figure was revised from 2.9 percent fall reported earlier. Annually, exports of electronic products contracted 10 percent, after a 14 percent decline in the previous month. At the same time, non-oil re-exports (NORX) fell 0.7 percent month-on-month, following a 2.2 percent decline in March. Annually, NORX fell 2 percent, in contrast to 2.5 percent growth in the previous month. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | Japanese consumer confidence declined more than expected in April, survey results from the Cabinet Office showed Monday. The consumer sentiment index dipped to 33.1 from 38.6 in March. The consensus forecast called for a reading of 36.7 for April. At the same time, households' consumer sentiment came in at 33.4, down from 38.3 in March. All the four sub-components of households' consumer confidence decreased on a monthly basis in April. The indicator for overall livelihood dropped to 34.9 from 38.3. The assessment of income growth declined to 36.9 from 39.5, and employment fell significantly to 28.1 from 36.4. Willingness to buy durable goods declined to 33.5 from 38.8 in the prior month. Japanese consumer confidence declined more than expected in April, survey results from the Cabinet Office showed Monday. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | |  Asking prices for homes in the U.K. climbed to a three-year high in May after the number of properties coming to markets declined, property website Rightmove said Monday. Average asking prices was up 1.3 percent month-on-month in May to GBP 238,874. The last time when the prices were higher was in June 2008. In April, prices rose 1.7 percent. On an annual basis, house price rose 0.7 percent after adding 0.1 percent in the previous month. Average unsold stock rose to 76 properties per branch from 74 in February, reaching the highest ever level for May as potential buyers were distracted by fine weather and bank holidays. Rightmove said that the Bank of England's (BoE) low interest rates counterbalanced the downward price pressure. BoE has been maintaining the benchmark rate at 0.5 percent for a twenty sixth consecutive month. Asking prices are now only 1.5 percent below their all-time high. Commenting on the data, Director of Rightmove, Miles Shipside said that BoE's decision to hold interest rates at unprecedented low levels, compared to all other property market downturns, has disrupted the traditional economic formula of an excess of supply over demand, leading to lower prices. According to Shipside, the lack of listings coming to market during the extended bank holiday period for Easter, the Royal Wedding and May Day had a clear impact on new sellers' asking prices, as a slump in seller numbers leads to some estate agents competing for new instructions by agreeing to market at unrealistic prices. New property listings fell to 20,000 per week from 29,000 per week over the extended bank holiday period, Rightmove said. According to a survey by the Royal Institution of Chartered Surveyors, a gauge for house prices in the U.K. rose to its highest level since July last year in April. In contrast, data released by Nationwide Building Society this month showed house prices falling 0.2 percent month-on-month. Data from the Lloyd's Banking Group Plc's Halifax division also pointed to a decline in house prices, by 1.4 percent on a monthly comparison in April. Asking prices for homes in the U.K. climbed to a three-year high in May after the number of properties coming to markets declined, property website Rightmove said Monday. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | Home loans in Australia declined a seasonally adjusted 1.5 percent month-on-month in March, the Australian Bureau of Statistics said Monday. The value of total housing commitments dropped 1.1 percent on a seasonally adjusted month-on-month basis to A$13 billion. The total value of dwelling commitments excluding alterations and additions slipped 0.1 percent during the month. Excluding refinancing, the number of home loans decreased 0.9 percent after adjustments. In original terms, the number of new home loans rose from 16 percent of the total owner occupied housing finance commitments from 14.9 percent in February. At the end of the month, the value of outstanding housing loans financed by authorized deposit-taking institutions increased 1.1 percent from February. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | |  Core machinery orders in Japan posted a surprise rise in March, in spite of the devastating earthquake and tsunami on the 11th, the Cabinet Office said on Monday, climbing a seasonally adjusted 2.9 percent compared to the previous month. That blew away analyst expectations for a decline of 10.0 percent following the 2.3 percent contraction in February. As a result of the data, the Cabinet Office maintained its assessment of machinery orders, saying "Machinery orders are picking up, but there are weak spots in the non-manufacturing sector." On an annual basis, machine orders also surprised to the upside by adding 6.8 percent versus forecasts for an 8.0 percent plunge following the 7.6 percent increase in the previous month. For the first quarter of 2011, machinery orders were up 3.5 percent compared to the previous three months. For the fiscal year ended in March, machinery orders climbed 7.0 percent on year. For the second quarter of 2011, core machinery orders are forecast to have jumped 10.0 percent compared to the previous quarter, based on the figures from the 280 manufacturers reflected in the data. The total number of machinery orders, including those volatile ones for ships and from electric power companies, saw a decline of 15.8 percent on month in March and an increase of 11.5 percent on quarter in Q3. For the fiscal year, total machinery orders jumped an annual 20.0 percent. Manufacturing orders saw a decline of 0.4 percent on month, while government orders fell 10.3 percent. Orders from overseas plunged 11.4 percent on month, while orders from agencies added 2.6 percent. Also on Monday, the Bank of Japan said that an index measuring prices for corporate goods in Japan was up 0.9 percent in April compared to the previous month, standing at 105.6. That was well above analyst expectations for an increase of 0.4 percent following the 0.6 percent gain in March. On an annual basis, corporate goods prices jumped 2.5 percent - again topping expectations for an increase of 2.1 percent after adding 2.0 percent in the previous month. Export prices rose 2.2 percent on month but fell 3.0 percent on year, while import prices surged 5.5 percent on month and 9.1 percent on year. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | The sale of new motor vehicles in Australia declined a seasonally adjusted 3.5 percent in April compared to the previous month, the Australian Bureau of Statistics said on Monday, standing at 84,332. That follows a 3.4 percent rise in March. By class, sales of passenger vehicles increased by 22 units (0.0 percent), while sports utility vehicles were down 9.6 percent and other vehicles lost 5.5 percent. By region, the sales of new motor vehicles decreased in seven of the eight states and territories. New South Wales recorded the largest percentage decrease of 5.1 percent, followed by Victoria (3.5 percent) and Queensland (3.4 percent). Over the same period, the Northern Territory recorded the only increase (1.6 percent). On an annual basis, new auto sales declined 8.4 percent after adding 1.9 percent in the previous month. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | Machinery orders in Japan rose unexpectedly in March, in spite of the devastating earthquake and tsunami on the 11th, the Cabinet Office said on Monday, climbing 2.9 percent compared to the previous month. That blew away analyst expectations for a decline of 10.0 percent following the 2.3 percent contraction in February. On an annual basis, machine orders also surprised to the upside by adding 6.8 percent versus forecasts for an 8.0 percent plunge following the 7.6 percent increase in the previous month. For the first quarter of 2011, machinery orders were up 3.5 percent compared to the previous three months. For the fiscal year ended in March, machinery orders climbed 7.0 percent on year. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | An index measuring prices for corporate goods in Japan was up 0.9 percent in April compared to the previous month, the Bank of Japan said on Monday, standing at 105.6. That was well above analyst expectations for an increase of 0.4 percent following the 0.6 percent gain in March. On an annual basis, corporate goods prices jumped 2.5 percent - again topping expectations for an increase of 2.1 percent after adding 2.0 percent in the previous month. Export prices rose 2.2 percent on month but fell 3.0 percent on year, while import prices surged 5.5 percent on month and 9.1 percent on year. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | An index measuring the average asking price for a home in the United Kingdom was up 1.3 percent in May compared to the previous month, property website Rightmove said on Monday, standing at 238,874 pounds. That follows a 1.7 percent rise in April. On an annual basis, house price rose 0.7 percent after adding 0.1 percent in the previous month. The average real estate agency was saddled with 76 properties per branch in May versus 74 in April - although Rightmove acknowledged that the figures are somewhat skewed by a huge drop in listing during the week of the royal wedding. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | Singapore is on Monday scheduled to release April figures for non-oil domestic exports, highlighting a modest day for Asia-Pacific economic activity. NODX is expected to rise 7.9 percent on year following the 10 percent annual expansion in March. The NODX for electronics is tipped to fall an annual 7.2 percent after falling 13.8 percent in the previous month. Japan will provide April numbers for consumer confidence and prices for corporate goods. The consumer confidence index is expected to show a score of 36.7 after coming in at 38.6 in March. The corporate goods price index is expected to rise 2.0 percent on year - the same rate as in March. India will announce April's wholesale price index, with forecasts calling for an increase of 8.4 percent on year following the 8.98 percent annual expansion in the previous month. Also, Australia will release March figures for housing and lending finance, as well as April's new motor vehicle sales data. Housing finance was down 5.6 percent on month and lending finance shed 2.3 percent on month in February, while vehicle sales added 3.4 percent on month in March. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | |  Although retail sales did not break the nine-month growth trend in April, some slackness was evident as we headed into the second quarter. Much of the gains were price related- a not-too-relishing proposition. Will the current wave of energy-led inflation push consumers on the defensive? A report released last week showed that consumer confidence held firm around depressed levels. Quite comforting was the fact that sentiment did not plunge under the weight of the rise in inflation. When analyzed against this backdrop, the recent pullback in commodity prices is a welcome development. From over $115-a-barrel, oil prices moderated and settled below the $100-a-barrel mark last week. Despite the correction in crude oil prices, gas prices have not budged a bit. Additionally, Goldman Sachs sees the recent correction as transitory, with the firm believing that the oil market is structurally bullish and prices are bound to go up in 12 months. Now, where does that leave the consumers? With the economy struggling with a patchy recovery, which was largely brought about by stimulatory props, any setback to spending, which single-handedly propels much of the economic activity, will wreak havoc. The Federal Reserve recently reaffirmed its commitment to wind up the QE II measures by June, as originally planned. Consumers are clearly at crossroads. It remains to be seen how they navigate around the uncertainty. Globally, the economic outlook is hazy too. Despite positive tidings concerning solid economic growth emerging out of Europe, the debt crisis in the region is simmering on. The focus now shifts to next week's Eurogroup meeting and the Ecofin meeting. Officials are likely to discuss the approval for the bailout package for Portugal and a second loan package for Greece, which is staring at the extreme possibility of getting its debt restructured. A detailed analysis of the U.S. retail sales report released last week showed that much of the sales growth came from gasoline and food, beverage and grocery sales, suggesting that consumers were left with very little to spend on discretionary items after paying for these essentials. Core retail sales, which exclude autos, gas and building materials, rose an anemic 0.2 percent. Inflationary readings are heating up, reflecting the surge in energy prices. The producer price index rose a bigger than expected 0.8 percent month-over-month in April, rising for the tenth straight month. Energy prices soared 2.5 percent, while food prices rose a modest 0.3 percent. Core producer price inflation rose 0.3 percent, unchanged from the previous month. Meanwhile, import prices rose 2.2 percent month-over-month in April compared to expectations of a 1.8 percent increase. Even after food and energy were excluded, import prices were still up 0.5 percent. The Commerce Department's business inventories report showed a 2.2 percent month-over-month increase in business sales in March. Meanwhile, business inventories were up 1 percent. The inventories to sales ratio fell to 1.23 in March compared to 1.24 in February. Additionally, a separate report released by the Commerce Department last week showed the trade deficit widened to $48.2 billion in March, marking the biggest deficit since June 2010. The wider deficit reflected a spike in petroleum imports, which pushed up imports by 4.9 percent, although exports rose 4.6 percent month-over-month, the biggest increase since September 2008. Manufacturing and housing data could dominate the proceedings on Main Street in the upcoming week. Traders are likely to closely watch the Federal Reserve's industrial production report for April, the results of the manufacturing surveys of the New York Federal Reserve and the Philadelphia Federal Reserve, the Commerce Department's housing starts data for April, the National Association of Realtors' existing home sales data for April and the weekly jobless claims data. The FOMC minutes are also likely to be combed to get further insights into the Fed's thinking about economic conditions and its monetary policy stance. Although the post-meeting press conference shed some light on the discussions and deliberations that had happened during the meeting, the markets may still be curious to know about the degree of cohesion or divisiveness among policymakers. The National Association of Realtors' housing market index for May, a Fed speech and announcements concerning Treasury auctions of 2-year, 5-year and 7-year notes round up the economic events of the week. We may be on track to see a further upside in housing starts in April, given the recent upturn in building permits. Nevertheless, the trend is still flattish and is not showing a solid rebound from the steep declines witnessed since four years back. According to BMO Capital Markets, the flood of distressed resale properties on the market has worsened the outlook for residential construction this year. Existing home sales are expected to improve in April from the month-ago levels due to the resurgence seen in the labor market, which has the potential to improve affordability. However, economists see the still-restrictive mortgage lending standards and concern about falling prices as headwinds. Industrial output growth may have slackened due to the after-effect of the March 11 earthquake in Japan. Shortages of parts may have marred the April numbers, although the trend is likely to be upward, supported by strong demand for business equipment and exports. Capacity utilization is also expected to see an uptick. Monday The results of the New York Federal Reserve's empire state manufacturing survey, which elicits response from 200 manufacturing executives in New York state, is slated to be released at 8:30 AM ET. The headline general business conditions index for May is expected to come in at 20. In April, the general business conditions index rose to 21.7 from 17.5 in March, with a positive reading indicating an increase in regional manufacturing activity. Economists had expected the index to come in unchanged compared to the previous month. The Treasury Department is due to release a report on the flows of financial instruments into and out of the U.S. for March at 9 AM ET. The National Association of Homebuilders is scheduled to release the results of its May survey on homebuilders' confidence at 10 AM ET. The housing market index based on the survey is widely expected to increase to 17. The index fell to 16 in April from a 10-month high of 17 in March. The sales expectations index fell 3 points to 23, marking the lowest reading since October, and the current conditions index declined 1 point to 16. Tuesday A report on housing starts, which refer to the number of privately-owned new homes on which construction has been started over some period, and building permits, which are the number of permits issued for new housing units each month, is slated to be released at 8:30 AM ET. Economists estimate housing starts of 570,000 for April. U.S. housing starts rose 7.2 percent month-over-month to a seasonally adjusted annual rate of 549,000 in March. On a more positive note, the previous two months' readings were revised higher. Single-family starts, which accounted for roughly 77 percent of the total starts, rose 7.7 percent compared to a 5.8 increase in multi-family starts, which is a more volatile category. Building permits, an indicator of future housing activity, climbed 11.2 percent in March, marking the first increase since December. Despite the buoyant reading, economists caution not to expect much upward movement from current levels. The industrial production report of the Federal Reserve is due out at 9:15 AM ET. Economists estimate 0.4 percent growth in industrial production for April, while capacity utilization is expected to come in at 77.4 percent. Industrial output rose a better than expected 0.8 percent month-over-month in March, marking the fifth straight increase, following an upwardly revised 0.1 percent increase in February. Manufacturing output rose a solid 0.7 percent and within this category, autos, construction supplies and business equipment showed marked strength. Capacity utilization rose to 77.4 percent, the highest since August 2008. Mining output was up 0.6 percent compared to a 1.7 percent increase in the output of utilities. Wednesday The Energy Information Administration is scheduled to release its weekly petroleum inventory report for the week ended May 13th at 10:30 AM ET. Crude oil stockpiles rose by 3.8 million barrels to 370.3 million barrels in the week ended May 6th. Inventories remained above the upper limit of the average range. Gasoline stockpiles rose by 1.3 million barrels but remained in the lower limit of the average range. Meanwhile, distillate inventories fell by 0.8 million barrels but remained in the upper limit of the average range. Refinery capacity utilization averaged 81.7 percent over the four weeks ended May 6th compared to 82.8 percent over the previous four weeks. The Federal Reserve is scheduled to release the minutes of its April 26-27 Federal Open Market Committee meeting at 2 PM ET. The FOMC statement released following the meeting showed that the central bank now believes that the economic recovery is proceeding at a moderate pace compared to its assessment in March that the recovery is on a firmer footing. The committee added a comment on inflation stating that inflation has picked up in recent months, although it still believes that inflation expectations remain stable and underlying inflation is subdued. The central bank also said it is sticking by its plan of re-investing principal payments from its securities holdings and will complete its purchase of $600 billion of longer-term treasury securities by the end of June. The committee repeated the statement reflecting its intention to leave interest rates at accommodative levels as long as it is warranted. In the first ever press briefing of its kind, Chairman Ben Bernanke suggested that the trade offs for further QE are getting less attractive due to higher measured inflation. He also suggested that reinvestments will continue after the QE II measures end and the end of reinvesting could be construed as the beginning step of monetary policy tightening. St. Louis Federal Reserve Bank President James Bullard is scheduled to speak to the Money Marketeers in New York at 7 PM ET. Thursday The Labor Department is due to release its customary jobless claims report for the week ended May 14th at 8:30 AM ET. Economists expect claims to decline to 425,000. Jobless claims fell by 44,000 to 434,000 in the week ended May 7 from an upwardly revised reading of 478,000 for the previous week. Economists had expected claims to slip to 430,000 from the 474,000 originally reported for the previous week. The four-week average rose 4,500 to 436,750, while continuing claims for the week ended April 30th rose 5,000 to 3.76 million. The National Association of Realtors is scheduled to release its report on existing home sales for April at 10 AM ET. Economists estimate existing home sales of 5.20 million for the month. Existing home sales rose to a seasonally adjusted annual rate of 5.1 million units in March compared to 4.92 million units in February. Single-family sales growth was primarily responsible for the upside. Distressed home sales accounted for 40 percent of the total sales. Existing home sales inventories as measured by the months of supply fell to 8.4 months from 8.5 months in the previous month. Meanwhile, the median home price declined 5.9 percent year-over-year to $159,600 in March. The results of the Philadelphia Federal Reserve's manufacturing survey are due out at 10 AM ET. Economists expect the diffusion index of current activity to show a reading of 23 for May. Activity in the manufacturing sector in the Philadelphia region slackened in April. The Philadelphia Federal Reserve's business conditions index fell to 18.5 in April from 43.4 in March, marking the biggest drop since October 2008 and the lowest reading since November 2010. The new orders and the shipments indexes fell 21.5 points and 5.8 points, respectively, while the unfilled orders index slid 2 points to 12.9. At the same time, the employment indexes were mixed, with the number of employees index dipping 5.9 points, while the average employee workweek index rose 4.5 points. Meanwhile, the 6-month outlook index slumped to 33.6 from 63 in March. The Conference Board is scheduled to release a report on the U.S. leading index for April at 10 AM ET. The consensus estimate calls for an unchanged reading for the leading indicators index for the month. The leading indicators index rose 0.4 percent month-over-month in March, with the bounce back in building permits accounting for the bulk of the upside. The coincident indicators index rose 0.2 points compared to a 0.4 increase in the lagging index. Friday There are no important economic reports due on Friday. Although retail sales did not break the nine-month growth trend in April, some slackness was evident as we headed into the second quarter. Much of the gains were price related- a not-too-relishing proposition. Will the current wave of energy-led inflation push consumers on the defensive? A report released last week showed that consumer confidence held firm around depressed levels. Quite comforting was the fact that sentiment did not plunge under the weight of the rise in inflation. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | Canadian stocks ended a third consecutive negative week with another modest loss on Friday, saddled by weaker commodities producers. The S&P/TSX composite index was down 12.26 points or 0.09 percent, to 13,377.16. Energy stocks fell 0.4 percent after the price of crude oil continued to fluctuate before finally settling at $99.65, a modest gain of $0.68. In the oil patch, Crescent Point Energy (CPG.TO) gained over 3 percent. Advantage Oil & Gas (AAV.TO) moved up over 1 percent. The oil and gas explorer slipped in to the red in first-quarter, reporting net loss of C$5.7 million or C$0.03 per share, compared to net income of C$33.1 million or C$0.20 per share last year. Energy services company Secure Energy Services (SES.TO) added over 4 percent after it said its first-quarter Funds From Operations rose to C$10.66 million or C$0.16 per share, from C$6.38 million or C$0.14 per share in the year ago quarter. Gold lost $13.20, to close at $1,493.60 per troy ounce. Among gold stocks, Goldcorp. (G.TO) gained over 1 percent while Agnico-Eagle Mines (AEM.TO) lost 0.12 percent. Gold miner Richmont Mines (RIC.TO) soared over 6 percent after reporting first-quarter net earnings, which include proceeds from the sale of Valentine Lake, of C$8.7 million or C$0.27 per share compared to C$1.8 million or C$0.07 per share in the first quarter last year. Barrick Gold (ABX.TO) was up 0.30 percent. San Gold Corp. (SGR.TO) reported almost C$6-million increase in first-quarter revenue but saw its net loss for the period almost doubled to C$5.3 million from C$2.7 million in the comparable 2010 period. San Gold stock was up 2.78 percent. Franco-Nevada Corp. (FNV.TO) gathered 0.63 percent. The precious metals company reported first-quarter net income of C$21.2 million or C$0.18 per basic share, compared to C$15 million or C$0.13 per basic share last year. Silver made a modest gain with Silver Standard Resources (SSO.TO) losing 0.40 percent while Silver Wheaton (SLW.TO) gaining 0.89 percent. Among base-metals miners, Teck Resources (TCK_B.TO) lost 1.88 percent. Metals distribution and processing company Russel Metals (RUS.TO) gained 1.95 percent after announcing first quarter earnings of C$33 million or C$0.55 per share, compared to C$9 million or C$0.15 per share in the prior year period. Analysts were expecting the company to report earnings of C$0.50 per share for the quarter. In other corporate news Fertilizer company Hanfeng Evergreen (HF.TO) gained over 5 percent after reporting that its third-quarter net income was C$8.35 million or C$0.13 per share, up from C$7.30 million or C$0.12 per share in the same quarter last year. Consulting services provider Stantec, Inc. (STN.TO) edged up 1 percent after reporting improved first quarter profit of C$23.8 million or C$ 0.52 compared to C$16.3 million or C$0.35 l in the year-ago quarter. Analysts were expecting the company to report earnings of C$0.53 per share for the quarter. Wood products company Ainsworth Lumber (ANS.TO) moved up 1.31 percent after reporting a much improved first-quarter net income of C$77.7 million or C$0.77 per share, compared with C$16.4 million or C$0.16 per share a year ago. Meanwhile, Shawcor Ltd. (SCL_A.TO) lost over 3 percent. The global energy services company reported that its first-quarter net income rose to C$20.5 million or C$0.29 per share from C$11.7 million or C$0.16 per share in the first quarter of the prior year. Power Corp. of Canada (POW.TO) moved up 0.21 percent after reporting earning of $216 million or $0.47 per diluted share for the quarter ended March 31 compared with $165 million or $0.36 per diluted share the previous year. Revenue fell to $7.04 billion, from $9.01 billion.in the comparable period. Data Group Income Fund (DGI.UN.TO) first-quarter net income slipped to C$1.8 million from C$3.4 million a year ago as revenues dipped $84.3 million from C$85.6 million. Still, the stock surged over 12 percent. Exchange Income Corp. (EIF.TO) company with interest in the transportation and industrial manufacturing sectors, reports its net profits fell to C$2 million in the first quarter from C$2.3 million last year. Consolidated revenue increased 73 per cent to C$92.9 million as the company availed the benefit of acquiring Bearskin Airlines last year. Stock edged up over 1 percent. TMX Group,(X.TO) the operator of the Toronto Stock Exchange,edged up 1.83 percent after reporting first-quarter net income rose to C$64.3 million ($66.8 million), or C$84 a share, up from C$56.7 million, or C$0.77 , a year earlier, helped by higher revenue and trading volumes.The company declared a dividend of C$0.40 per share. TMX, which also operates the TSX Venture Exchange for small-capitalization companies and the Montreal Exchange derivatives market, reported filing of applications with Canadian provincial regulators for approval of its $3 billion tie-up with the London Stock Exchange. In economic news, Canadian new motor vehicles sales rose more than expected in March due to better sales of both passenger cars and trucks. The number of new motor vehicles sold in March increased 2.0 percent to 135,261 units, according to Statistics Canada. Economists were expecting new motor vehicle sales to rise 1.5 percent, following the 0.6 percent decline witnessed in February. From south of the border, the U.S. Labor Department said its consumer price index rose by 0.4 percent in April, in line with most economists expectations. The core consumer price index, which excludes food and energy prices and is considered a better benchmark for inflation, increased by a more modest 0.2 percent. Elsewhere, flash estimates from Eurostat revealed that the euro zone economy expanded 0.8 percent sequentially in the first quarter 2011. The growth rate accelerated from the 0.3 percent increase seen in the fourth quarter and also exceeded the consensus estimates of 0.6 percent growth. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | |  The dollar ended a winning week at its highest since early April versus the euro, after a closely watched survey showed U.S. consumer sentiment is on the rise. The preliminary University of Michigan-Thomson Reuters consumer sentiment index climbed to a reading of 72.4 from a reading of 69.8 in April. Still, consumers are not as confident as they were before gas prices spiked in February and March. Meanwhile, concerns about Greece's sovereign debt problems continued to put a dent in the euro. The buck rose to $1.4065 against the euro, compared to an early low of $1.4340. Earlier in May, the dollar hit a 17-month low near $1.50. There was little reaction to the first major U.S. economic data of the day. U.S. consumer prices rose 0.4 percent as expected in April on higher food and energy prices, but a relatively small uptick in inflation is unlikely to worry officials at the Federal Reserve. The buck was steady at $1.6190 versus the sterling, and just below Y81 versus the yen. In economic news from around the globe, the Eurozone economy expanded 0.8 percent in the first quarter from the fourth quarter of 2010, flash estimates from the Eurostat showed Friday. The growth rate accelerated from the 0.3 percent increase seen in the fourth quarter and also exceeded the expected 0.6 percent growth. German GDP grew by a seasonally and calendar adjusted 1.5 percent quarter-over-quarter during the first three months of 2011. Elsewhere, the French economy expanded 1 percent sequentially in the first quarter, following the 0.3 percent expansion seen in the fourth quarter of 2010. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | Hong Kong's strong first quarter growth has added to concerns over unsustainably high property prices, Capital Economics Senior China Economist Mark Williams said in a note on Friday. The city's economy expanded at the fastest pace in a year during the three months ended March. Gross domestic product rose 7.2 percent annually in the first quarter compared to a revised 6.4 percent increase in the previous three months. The government said that the economy is poised for a real growth of 5 percent - 6 percent in 2011, faster than the 4 percent - 5 percent forecast announced in February, even after allowing for some moderation for the rest of the year. The danger of overheating continues to increase with the underlying inflation, which excludes one-off measures, set to rise further given the strength of the economy and the rising rental costs, said Williams. Relative to incomes, property prices are now near the 1990s bubble high. "Property bulls point to the strength of purchases by mainland buyers, but such demand could be a source of volatility rather than stability over the medium term," the economist said. He expects the Chinese government to implement measures at some point to discourage wealthy individuals from buying trophy homes overseas. "Prices could plausibly halve if buyers started to question how long they can rely on low mortgage rates and on mainland buyers to prop up demand," Williams said. The government can do little to limit property prices without allowing the currency to float or introduce capital controls. Both measures are unthinkable, according to Capital Economics. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | Consumer sentiment in the U.S. has seen a notable improvement in the month of May, according to a report released by Reuters and the University of Michigan on Friday, with their consumer sentiment index rising by more than expected. The report showed that the preliminary reading on the consumer sentiment index for May came in at 72.4 compared to the final April reading of 69.8. Economists had been expecting the index to inch up to a reading of 70.0. Consumer sentiment in the U.S. has seen a notable improvement in the month of May, according to a report released by Reuters and the University of Michigan on Friday, with their consumer sentiment index rising by more than expected. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | The stronger-than-expected first quarter growth in Eurozone was likely driven mainly by domestic demand, validating the view that the region's recovery has reached full sustainability, UniCredit Chief Eurozone Economist Marco Valli said Friday. The 17-nation currency bloc expanded 0.8 percent in the first quarter from the previous three months, the flash estimate released by the Eurostat showed today. The growth rate accelerated from the 0.3 percent increase seen in the fourth quarter and also exceeded the consensus estimate of 0.6 percent. The expenditure breakdown is not yet available. The economist also sees boost from an expected technical rebound in construction investment. Following today's data, Valli forecast Eurozone growth to average around 2 percent this year. Further, the economist expects the European Central Bank to raise its growth and inflation forecasts at the June meeting. The UniCredit economist also expects the central bank to "switch to" the "strong vigilance" mode and pre-announce a July interest rate hike. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | |  Driven by increases in the costs of food and energy, consumer prices continued to rise in April, according to figures released by the Labor Department on Friday. The Labor Department said its consumer price index rose by 0.4 percent in April, with the increase in line with what most economists had expected. Prices rose by 0.5 percent in each of the two previous months. Almost half of the price increase in April is due to higher gasoline prices, which were up 3.3 percent. Overall, energy prices increased by 2.2 percent. Food prices also contributed to the overall price increases seen by consumers, although the 0.4 percent increase in food prices was the smallest so far this year. Driving the increase in food prices were higher prices for meat, poultry, fish, eggs, dairy and non-alcoholic beverages, which were somewhat offset by a drop in the cost of fresh vegetables. The core consumer price index, which excludes food and energy prices and is considered a better benchmark for inflation, increased by 0.2 percent in April following a 0.1 percent increase in March. Economists had expected the core index to edge up by 0.1 percent. Prices for new and used vehicles were among the highest growing costs for consumers, with the index for new vehicles climbing 0.7 percent and the index for used cars and trucks rising 1.2 percent and Medical care costs also increased, rising by 0.3 percent overall, driven partially by a 0.5 percent increase in the cost of prescription drugs. Costs for apparel and household furnishings, which had dropped in March, both increased by 0.2 percent in April. The shelter index, a measure of rents and the cost of owning a home, increased by a modest 0.1 percent. The increase in consumer prices more than erased a modest increase in average hourly earnings in April. According to the Labor Department, average hourly earnings increased by 0.1 percent in April. However, in light of the higher cost of consumer goods, the real average hourly earnings of workers declined by 0.3 percent. Driven by increases in the costs of food and energy, consumer prices continued to rise in April, according to figures released by the Labor Department on Friday. The Labor Department said its consumer price index rose by 0.4 percent in April, with the increase in line with what most economists had expected. Prices rose by 0.5 percent in each of the two previous months. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | |  The euro struggled to regain momentum on Friday, even after the latest GDP figures from Germany and France showed the region's most powerful economies are growing at a relatively robust rate. Still, sovereign problems of the periphery of the euro zone remain unresolved, and appear to be growing on a daily basis. Greece is once again in the cross-hairs of bond market vigilantes and the nation's borrowing costs have risen to unsustainable levels compared to its more fiscally prudent neighbors. European Central Bank Governing Council member Ewald Nowotny told an Austrian paper that Greece has failed to satisfy austerity conditions agreed to as part of the massive bailout program reached last year. With Athens looking like it will need even more money to see it through the next few years, voters in neighboring countries have bristled at the notion of another lifeline. Faced with the prospect of debt-ridden member states defaulting or restructuring sovereign debt, the euro has come down sharply in recent days compared to the dollar. Today's GDP figures gave the euro a modest reprieve. The euro edged slightly higher to $1.43, having touched a monthly low of $1.4122 in the previous session. With the advance, the euro edged back toward May's 17-month peak near $1.50. There was little reaction to the latest news on U.S. inflation. U.S. consumer prices rose as expected in April on higher food and energy prices, but a relatively small uptick in core inflation is unlikely to worry officials at the Fed, who seem committed to near-zero interest rates through 2011. The euro barely budged versus the yen today, hovering near Y115. Early gains took the euro to GBP 0.8795 versus the sterling, away from yesterday's 6-week low of 0.8672. Looking closer at the day's economic figures from the euro zone, German GDP grew by a seasonally and calendar adjusted 1.5 percent quarter-over-quarter during the first three months of 2011. Elsewhere, the French economy expanded 1 percent sequentially in the first quarter, following the 0.3 percent expansion seen in the fourth quarter of 2010. The Eurozone economy expanded 0.8 percent in the first quarter from the fourth quarter of 2010, flash estimates from the Eurostat showed Friday. The growth rate accelerated from the 0.3 percent increase seen in the fourth quarter and also exceeded the expected 0.6 percent growth. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | Canadian new motor vehicles sales snapped back in March, rising more than expected due to better sales of both passenger cars and trucks. The number of new motor vehicles sold in March increased 2.0 percent to 135,261 units, according to data from Statistics Canada released Friday. Economists expect new motor vehicle sales to rise 1.5 percent, following the 0.6 percent decline witnessed in February. New auto sales have been up and down for the last twelve months, but with March's strong gains sales were up 2.7 percent compared to the same period a year ago. However, preliminary industry data indicate that the number of new motor vehicles sold in April decreased by 1 percent. Demand for North American made automobiles helped new passenger car sales rise 2.7 percent in March, a second consecutive month of gains. Overseas-built passenger car sales declined 7.0 percent, reaching their lowest point in six years. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | |  Driven by strong activity in Germany and France, overall economic growth in the euro area improved markedly in the first quarter. However, economists are of the view that the solid expansion masked the two-speed recovery in the region. Elsewhere, the European Commission maintained its Eurozone 2011 growth outlook and lifted inflation estimate in its latest Spring forecast. The 17-nation currency bloc expanded 0.8 percent in the first quarter from the fourth quarter of 2010, according to the flash estimate released by the Eurostat. The growth rate accelerated from the 0.3 percent increase seen in the fourth quarter and also exceeded the consensus estimate of 0.6 percent. However, economists are not convinced about the sustainability of this growth for a longer period. According to IHS Global Insight's economist Howard Archer, economic activity is expected to moderate over the coming months in the face of headwinds. The faster than expected growth is likely to prod the European Central Bank to lift interest rates by another quarter point sooner rather than later. Compared with the same quarter of the previous year, the seasonally adjusted GDP increased by 2.5 percent in the first quarter, up from the prior quarter's 2 percent expansion. This was also bigger than the 2.2 percent growth expected by economists. Germany's economic growth rebounded 1.5 percent sequentially in the first quarter, underpinned by the robustness of domestic demand. Additionally, the French GDP growth at 1 percent, exceeded expectations and logged its biggest expansion since the second quarter of 2006. In Italy, GDP grew only 0.1 percent, the same rate of growth as seen in the fourth quarter. Meanwhile, Spanish GDP growth quickened to 0.3 percent from 0.2 percent. Portugal slipped back to recession in the first quarter by contracting 0.7 percent after recording a 0.6 percent fall in the fourth quarter last year. On the other hand, Greece recorded 0.8 percent sequential growth, ending its four consecutive quarters of contraction. European Commissioner for Economic and Monetary Affairs Olli Rehn said the latest Spring outlook suggests that the recovery is solid despite recent external turbulence and tensions in the sovereign debt market. For 2011, the European Commission sees 1.6 percent economic growth in Eurozone, unchanged from its interim forecast published in February. However, it was slightly larger than the 1.5 percent growth estimated in the autumn forecast. The commission expects growth to accelerate to around 2 percent in 2012. The commission said this outlook is supported by better prospects for the global economy and an overall upbeat EU business sentiment. On the price front, the commission said relatively high inflation is on the cards over the coming period. Inflation is expected to be at 2.6 percent this year, up from the previous estimate of 2.2 percent. It is estimated to slow slightly to 1.8 percent next year. Labor market conditions stabilised over the last year. However, the situation is highly differentiated across nations. The unemployment rate in the euro area will fall to 10 percent this year and again to 9.7 percent in 2012, the Commission estimated. Public finance began to improve in 2010, albeit at differing degrees in different countries. The euro area government deficit is forecast to ease to 4.3 percent of GDP this year from 6 percent last year. It is expected to drop again to 3.5 percent of GDP next year. The EU27 grew by 0.8 percent on a quarterly basis in the first quarter and by 2.5 percent on an annual comparison. The European Commission projects 1.8 percent growth for this year and 1.9 percent for 2012. Driven by strong activity in Germany and France, overall economic growth in the euro area improved markedly in the first quarter. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | |  The dollar was slightly weaker versus the euro Friday morning in New York, as data showing the German and French economies grew faster than expected in the first quarter. The news overshadowed concerns about Greece's escalating debt crisis, and the potential of contagion among other big debtors in the regions. This morning, Prime Minister George Papandreou said that rising Greek borrowing costs, as far higher than those of Germany and its other euro zone cousins, are "not sustainable in a monetary union." Still, the dollar eased to $1.43 versus the euro, edging back toward a 17-month low near $1.50 set earlier in May. The buck was steady near Y80.70 versus the yen after paring overnight losses. Against the sterling, the buck consolidated its recent gains to trade at $1.6260. Traders were looking ahead of the latest news on U.S. consumer price inflation, due out at 8:30 am ET this morning. Consensus estimates call for a 0.4 percent increase in the consumer price index, while the core consumer price index that excludes food and energy is likely to have risen 0.1 percent. The Reuters/University of Michigan's consumer sentiment survey for May will come shortly before 10 am ET. Economists expect a slight uptick in the index to 70 from 69.8 in April. Across the Atlantic, the Eurozone economy expanded 0.8 percent in the first quarter from the fourth quarter of 2010, flash estimates from the Eurostat showed Friday. The growth rate accelerated from the 0.3 percent increase seen in the fourth quarter and also exceeded the expected 0.6 percent growth. German GDP grew by a seasonally and calendar adjusted 1.5 percent quarter-over-quarter during the first three months of 2011. Elsewhere, the French economy expanded 1 percent sequentially in the first quarter, following the 0.3 percent expansion seen in the fourth quarter of 2010. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | Capacity utilization improved in the first quarter, after slightly slowing in the previous quarter, official figures showed Friday. The capacity utilization rate in industry rose to seasonally adjusted 89 percent from a downwardly revised 88.6 percent in the previous quarter, Statistics Sweden said. In manufacturing, the rate climbed to 89 percent from 88.6 percent. In the mining sector, the rate rose to 90.4 percent from 89.7 percent. On a working day adjusted basis, capacity utilization rose by 4.5 percentage points to 88.6 percent in the first quarter. Separately, the agency reported that industrial stocks rose 10.3 percent in volume during the first quarter from the previous three months. Year-on-year, growth in stocks was 7.3 percent. Sweden's manufacturing activity grew at a faster pace in April, after slowing in the previous two months, survey data released by Swedbank and the Swedish National Association of Purchasing and Logistics showed last week. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | Switzerland's producer and import price index rose at a slower annual pace for the second month in a row in April, data from the Federal Statistical Office showed Friday. The producer and import price index edged up 0.1 percent annually, following a 0.4 percent increase in March. Economists had expected the index to rise 0.5 percent. Month-on-month, the index rose 0.3 percent, following a 0.4 percent increase in the previous month. The producer price index fell annually for the second straight month in April. The index dropped 0.5 percent, after a 0.1 percent dip in the previous month. On a monthly basis, the index edged up 0.1 percent, after a 0.2 percent gain in March. The import price index increased 1.5 percent year-on-year in April, a tad slower than March's 1.6 percent rise. The monthly increase of 0.6 percent in the index was due to further price increases for petroleum and related products, the agency said. In March, import prices rose 1 percent from the previous month. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | Cyprus retail sales volume declined at a slower pace in February, preliminary data from the statistical office showed Friday. Retail sales volume dropped 4.8 percent month-on-month, following a 31 percent slump in January. In January, sales volume grew 2.2 percent from the year-ago period. During the January-February period, retail sales volume rose 2.6 percent from last year. In value terms, retail turnover declined 2.8 percent monthly in February, much slower than January's 31.3 percent fall. Sales value increased 6.8 percent annually in January. In the first two months of the year, sales value rose 7.1 percent. The statistical office also reported that vehicle registrations declined 12.2 percent annually during the first four months of the year. Preliminary estimates from the agency showed today that Cyprus' economy stagnated in the first quarter, following four quarters of expansion. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | The European Commission on Friday maintained Eurozone's 2011 growth outlook and lifted inflation forecast. For 2011, the economic growth is seen at 1.6 percent, unchanged from its interim forecast published in February. The growth is forecast to edge up to around 2 percent in 2012, the latest Spring forecast showed. The commission said this outlook is supported by better prospects for the global economy and overall upbeat EU business sentiment. Inflation is expected to average 2.6 percent this year compared to the previous estimate of 2.2 percent. At the same time, the government deficit is forecast to ease to 4.3 percent of GDP this year from 6 percent in 2010. The European Commission on Friday maintained its 2011 growth outlook for the euro area and lifted inflation forecast. (Market News Provided by RTTNews) | | | | | | | | | |  | |  | |  |
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